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Marshalls Corporation has a bond currently outstanding. The bond has a face value of $1,000 and matures in 10 years. The bond makes no coupon
Marshalls Corporation has a bond currently outstanding. The bond has a face value of $1,000 and matures in 10 years. The bond makes no coupon payments for the first three years, then pays $25 every six months over the subsequent four years, and finally pays $85 every six months over the last three years. If the required return on these bonds is 5.5 percent compounded semiannually, what is the current price of the bond?
$986.33 | ||
$997.88 | ||
$1,049.55 | ||
$1,027.68 | ||
$1,009.82 |
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